A study of mass transit systems in American cities revealed that long-run revenues generally decline after substantial fare increases. This suggests that:
A. mass transit service deteriorates in the long run as price rises.
B. the demand for mass transit is price-elastic in the long run.
C. there are few good substitutes for such systems in urban areas.
D. the demand for mass transit is price-inelastic in the long run.
Answer: B
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The New Keynesian model, is Keynesian in that ________
A) it assumes wages and prices are sticky B) changes in the money supply are taken to be the single most important influence on business movements C) the velocity of money is a constant D) expectations are assumed to be rational
Combating recession may require the government to
a. decrease aggregate supply. b. increase aggregate demand. c. decrease aggregate demand. d. decrease government spending.
Melissa offers you $1,000 today or $1,500 in 5 years. You would prefer to take the $1,500 in 5 years if the interest rate is
a. 8 percent. b. 9 percent. c. 10 percent. d. All of the above are correct.
The average cost for spending three days in a hospital in the US is closest to:
If we get very sick, it can be very expensive. This is part of the reason why 91 percent of all Americans had some type of health insurance in 2017, according to the Henry J. Kaiser Family Foundation. In 2018, the average total health care costs, including the employer's contribution to health insurance, was $28,166 for a family of four, according to the well-regarded Milliman Medical Index. This amount had more than doubled over the previous 10 years. Part of the huge cost of getting sick in America is the enormous cost of staying in a hospital for just a single day. The US Government's Healthcare.gov estimated the average cost of a 3-day hospital stay to be about $30,000. In fact, they reported that the average cost of fixing a broken leg could cost up to $7,500. The very high cost of being sick in America is due in large part to the fact that we have chosen to keep health care largely private, rather than being run by the government, which it is in most other Western countries. This offers consumers more choice in the selection of doctors, hospitals and even types of surgery, but these options are expensive. A. $500 B. $5,000 C. $30,000 D. $1,000